ASHEVILLE - The city will give a South Carolina developer $1.6 million to build 64 apartments on the western edge of downtown with half of them at "affordable" or below-market rates.

Rents for the apartments to be built on the city-owned property would be determined after the complex is finished, estimated at March 2019. According to current economic conditions, they could be as low as $603 a month for a single-bedroom unit without utilities.

The City Council voted 6-1 Tuesday for the deal for the former parks maintenance site at 338 Hilliard Ave. Supporters praised the arrangement as a first of its kind.

"This is actually really innovative, what we're doing tonight," said Mayor Esther Manheimer. "It's the first time we've actually leveraged city land for an affordable housing project."

Detractors, though, including Councilman Keith Young who voted against the deal, said the rents overall were too expensive for needy residents.

The city had been in negotiations for half a year with Tribute companies to build affordable apartments at the 0.8-acre site just west of the Aston Park Tennis Center. But the Wilmington-based developer pulled out of negotiations in April.

In the new deal, the city will give Kassinger Development Group a $1.3 million 50-year loan from its housing trust fund at 2 percent interest plus an estimated $291,000 "land-use incentive grant" paid to the company over 10 years in the form of cash and waived city fees.

The Sullivans Island, South Carolina, company would lease the Hilliard property for 50 years, making payments by giving the city 10 percent of the complex's net cash flow.

Kassinger would build the complex at an estimated cost of $8 million and pay property taxes on it. As public land the property now generates no taxes. The company would also guarantee that for half a century that 52 percent of the units would be affordable or below-market rate.

That breaks down to 20 apartments reserved for people making 80 percent of the area median income, which right now would mean an individual making $34,350 a year or a family of four with a combined income of $56,900.

Thirteen apartments would be for people making 60 percent of the median income, which currently means $25,763 for a single person or $42,675 for a family of four.

The complex will be made up of one- and two-bedroom units.

For those making 80 percent of the median income a one-bedroom unit under current economic conditions would rent for $848 without utilities and a two-bedroom would rent for $931.

For those making 60 percent of median income, a one-bedroom would be $603 and a two-bedroom would be $655.

The remaining 31 units could be rented at market rate, which now could be around $1,100 for a one-bedroom unit or $1,200 for a two-bedroom, said Jeff Staudinger, the outgoing assistant city director of the community and economic development department.

Critics said they were disappointed there were no units reserved for the homeless and that rents in general were too high to help people who really needed it.

Resident Melissa Clark said she had taught low-income children her entire life and doesn't see the rent reduction as "much of a step."

"I can get a one-bedroom for about $700-750 right now," Clark said.

Young, the one councilman voting no, acknowledged he supported the rent structures in the original arrangement with Kassinger, but said he was voting against the final deal for "symbolic" reasons.

"I'm saying in the future for city-owned land that we possibly ... improve those basic requirements to make those affordable for more people in our community," Young said. "It is city land."

Councilman Brian Haynes voted yes but said he was "still concerned about what we are doing for deeply affordable units."

Gordon Smith, one of the most vocal advocates for housing issues on the council, said Tribute company backed out because of escalating construction costs.

The city risked not getting any housing on the land if it offered a deal that was too stringent, Smith said.

"I want to bring us back to the numbers and the reality of this situation."